Western Digital (WDC) Stock Rises 17% on Nvidia CES Storage Announcement

TLDR

• Western Digital stock surged 16.8% to $219.38 after hours following Nvidia CEO Jensen Huang’s CES presentation on new storage technology
• Huang introduced “context memory storage” for the Vera Rubin chip platform, designed to speed up AI chatbot responses
• Storage sector rallied broadly with SanDisk up 27%, Seagate up 14%, and Micron up 10%, all hitting record highs
• SanDisk launched rebranded Optimus NVMe solid-state drives at CES, targeting AI PC and workstation builders
• U.S. labor market data due Wednesday and Friday could influence tech stock momentum and rate expectations

Western Digital Corp shares climbed 16.8% to $219.38 in after-hours trading Tuesday. The stock touched $221.16 earlier in the session.

Western Digital Corporation, WDC

The rally came after Nvidia CEO Jensen Huang spoke at CES in Las Vegas. He unveiled a next-generation chip platform called Vera Rubin.

Western Digital makes hard disk drives for cloud, client and consumer markets. Investors have used the stock as a way to play AI infrastructure spending.

The company’s cloud business serves public and private cloud environments. It also sells directly to end customers.

Storage Sector Catches Fire

Tuesday’s move wasn’t isolated to Western Digital. SanDisk jumped more than 27% in the same session.

Seagate Technology gained 14%. Micron rose 10%.

Ellerbroek expects capital spending estimates to climb again. That view reflects broader optimism around AI data center buildouts.

SanDisk used CES to rebrand its internal NVMe solid-state drives. The new line is called SanDisk Optimus.

The top GX PRO tier targets developers, professionals and gamers building AI PCs and workstations. The company plans to roll out the updated branding to select retailers in the first half of 2026.

Recent Guidance and Separation

CFO Kris Sennesael projected fiscal second-quarter revenue of about $2.9 billion at the midpoint. He also guided for non-GAAP EPS of roughly $1.88.

The company completed the separation of its flash unit into SanDisk on Feb. 21, 2025. That split gave investors two pure-play names in the storage market.

He warned that current high prices may not hold over the longer term. That caution reflects concerns about valuation stretched by fast-moving sentiment.

Traders will now watch U.S. labor market data for the next catalyst. The Bureau of Labor Statistics will release the Job Openings and Labor Turnover Survey on Wednesday, January 7.

The December Employment Situation report follows on Friday, January 9. Both reports can shift rate expectations and influence high-multiple tech trades like Western Digital.

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